a2 Milk (ASX:A2M) lobs NZ$270M offer for NZ facility

Company News

by Katrina Bullock

The a2 Milk Company is engaged in exclusive discussions with nutrition dairy business, Mataura Valley Milk with a view to participating in manufacturing at the facility in Southland, New Zealand.

It lobbed an offer to acquire e a 75.1 per cent interest in the company for approximately NZ$270 million.

The acquisition target’s current majority shareholder, China Animal Husbandry Group, would retain a 24.9 per cent interest in the company.

A2 Milk says this move was prompted by growth in its infant nutrition business and that it would complement its existing strategic relationships with Synlait Milk and Fonterra Co-operative Group, which remain in place.

Its intention is to invest further in the facility to establish blending and canning capacity.

Shares in a2 Milk Company (ASX:A2M) are trading 2.37 per cent higher at $18.59.